A.G. Barr Sees Higher Revenue But Flags Uncertainty, Regulations
A.G. Barr Plc, the maker of popular Scottish soft drink Irn-Bru, said on Friday it expects to report higher full-year revenue, but flagged prolonged economic uncertainty in Britain and regulatory intervention in the soft drinks industry.
The company said it expects to have generated revenue of about £277 million in the 52 weeks ending 26 January, 5% higher than a year earlier.
"The impact of the Soft Drinks Industry Levy has been evident across the UK soft drinks market with value growth significantly outstripping volume in the period," the company said.
The levy, dubbed the "sugar tax", was imposed on makers of sugary drinks last year, forcing A.G.Barr to change the recipe for its prized Irn Bru, much to the ire of its many devotees.
"Looking ahead, the current political and economic uncertainty in the UK looks set to continue. For the soft drinks industry, further regulatory intervention is on the horizon," the company added in a statement.
Last October, Chancellor Philip Hammond had suggested a tax on single-use plastic packaging which contains less than 30% recycled content.
A Numis note in November said the company currently uses minimal recycled content but has pledged to increases usage up to about 50%.